Private Market Investments in Retirement Plans

This technical report discusses the growing interest in incorporating private market investments within defined contribution retirement plans. It presents findings from an advisor survey conducted by Empower, which indicates that a significant percentage of financial advisors are familiar with private market investments and are increasingly open to recommending them for retirement plans. The report highlights that 68% of advisors would recommend these investments, particularly if there is greater regulatory clarity. It outlines the potential benefits, such as portfolio diversification and higher returns, alongside challenges like liquidity and investment complexity. The report also notes that advisors are considering risk-aware approaches, including professionally managed accounts, to facilitate the introduction of these investments. As regulatory guidance evolves, the report suggests that advisors are well-positioned to collaborate with plan sponsors to responsibly integrate private market investments, ultimately aiming to enhance long-term financial security for retirement savers.